US House Committee Pressures Meta for Transparency on Crypto and Blockchain Plans

The United States House Financial Services Committee is intensifying its scrutiny of Meta's involvement in blockchain and cryptocurrency, urging transparency.

Meta's Alleged Intentions

In a letter dated January 22, Maxine Waters, a senior committee member, addressed Meta's CEO, Mark Zuckerberg, and COO Javier Olivan. Waters highlighted the existence of active cryptocurrency and blockchain-related trademark applications since March 18, 2022, suggesting an ongoing expansion into the digital assets ecosystem.

Contradictory Statements

Contrary to Meta's prior claim of no ongoing digital asset-related work, Waters emphasized the contradiction. Meta's abandonment of the Diem cryptocurrency stablecoin (formerly Libra) in 2019 due to legislative pressure was noted, and the subsequent sale to Silvergate Bank for $200 million in January 2022 was highlighted.

Stalled Projects

Meta's plan to launch the Novi digital wallet (formerly Calibra) by 2020 has faced setbacks with no announced release date. The committee expressed concern about Meta's strategic direction and sought clarification on the company's stance regarding cryptocurrency, digital wallets, and Web3 projects.

Trademark Filings

Trademark applications encompass services like trading, exchange, payments, transfers, wallets, and related hardware and software infrastructure. Meta has received Notices of Allowance (NOAs) for these filings, suggesting compliance with registration requirements.

Critical Questions and Deadlines

Waters posed critical questions regarding Meta's response to NOAs, projects related to Web3, and potential cryptocurrency payments platform launch. The company must respond to the first NOA by February 15, 2024, and the latest NOA by July 16, 2024.

Unanswered Inquiries

Waters seeks clarification on Meta's stablecoin research, potential partnerships, interest in distributed ledger technology (DLT), and how its technology may facilitate crypto-related functions within the metaverse.

Meta faces growing pressure to address concerns and provide clarity on its cryptocurrency and blockchain plans. The committee's inquiries reflect a demand for transparency in Meta's strategic direction, signaling potential challenges ahead for the tech giant in navigating the evolving landscape of digital assets.